Question

QUESTION -VARIANCES 2 The standard cost card for product Z shows the following details: Standard costs per unit of Z produced: 4 kgs of material A €3.10 per kg 3 litres of material B @ €1.70 per litre 2.5 hours of direct labour €12 per hour Variable production overhead @ €10 per direct labour hour Standard factory cost per unit 12.40 5.10 30.00 25.00 €72.50 In period 3 2,600 units of Z were produced. Materials used in production were 10,000 kgs of A purchased for €3.12 per kg, and 8,160 litres of B purchased for €1.65 per litre. 5,980 hours of direct labour were worked and paid for at the standard rate. Variable production overhead incurred amounted to €74,400. You are required to calculate total variances for materials, labour and overhead and to reconcile actual factory cost of production in period 3 with the standard cost. QUESTION -VARIANCES 3 G'Day Limited manufactures one product, and the entire product is sold as soon as it is produced. There are no opening or closing stocks and work in progress is negligible. The company operates a standard costing system and analysis of variances is made every month. The standard cost card for the product, a boomerang, is as follows: Direct materials Direct wages Variable overheads Fixed overhead Standard cost Standard profit Standard selling price 0.5 kilos at €40.00 per kilo 2 hours at €20.00 per hour 2 hours at €3.00 per hour 2 hours at €37.00 per hour 20.00 40.00 6.00 74.00 140.00 60.00 200.00 Selling and administration expenses are not included in the standard cost, and are deducted from profit as a period charge. Budgeted output and sales for the month of June 2xx5 was 5,100 units. Actual results for June 2xX5 were as follows; Production of 4,850 units was sold for €956,000; Materials consumed in production amounted to 2.300 kilos at a total cost of €98,000; Labour hours paid for amounted to 8,500 hours at a cost of €168,000; Actual operating hours amounted to 8000 hours; Variable overheads amounted to €26,000; Fixed overheads amounted to €423,000; Selling and administration expenses amounted to €180,000. You are required to: (a) calculate all variances: (b) prepare an operating statement for the month ended 30 June 2xx5.

Variances questions, Introduction To Management Accounting 2

help me in all of them please if possible. thank you.

Answer 1

PAGE NO. DATE: Total variances for Material A=(39,940-312009) - £1040 feudbyde B . (13.260 -13.464 - Aduces Variance2 labour variance 2178000-71760): € 6940 (fawowtable) Variable serheads (65.000 - 74,400)-c- gyoo they Standard Cost of product 2 Materialt ykg x 2600 Unit 3.10 kg €32,240 Ge o B 3.1šter X 260D Dit X£17(0:1 13,20 0,60 labour 2600unitx 2. Shaus 12 hours f 78,000 Variable Orchid. EjOX 200X2eshows - 65000 Total cost €188SOD Reconciliation Standard of Actual Cost.. f Cost with o € 190824 Actual factory lost pad" Material variance --Actual lost az Material A looooke XB3212 B=8160 liter 14-65 - £ 312_000D € 13,464.00 £104ca €-904 w Labon Variane € 6940 variable orecchead Variance t-guio Standard Cost labour 5980hours yel 2 hours. Variable Orechod - 5groheur X€ 12,44 Totatlost - £7,760 E 74.40D € 190824